MARKETBEAT U.S. Industrial

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1 MARKETBEAT U.S. Industrial Q U.S. INDUSTRIAL Employment Indicators Q2 16 Q2 17 Total Nonfarm Employment 143.9M 146.2M Industrial Employment 25.2M 25.6M Unemployment 4.9% 4.4% Source: BLS Market Indicators Q2 16 Q2 17 Overall Vacancy 6.1% 5.3% Net Absorption 77.3M 59.5M Under Construction 193.7M 237.1M Weighted Asking Rent (NNN) $5.38 $ Month Forecast 12-Month Forecast Economy Recent economic indicators point to a U.S. economic expansion that still has legs. With 222,000 net new nonfarm payroll jobs added in June, job growth remains solid. In the first half of 2017, 1.1 million new jobs were created, indicating that the U.S. economy is still a job-creating machine. In fact, the economy has added jobs every month since October 2010 a record 81-month stretch that has absorbed roughly 16 million workers. That has spurred demand for industrial space, which has registered 1.5 billion square feet (bsf) of net absorption during that period. The manufacturing sector also remains on a roll. The Institute for Supply Management s (ISM) Purchasing Managers Index (PMI) rose to 57.8 in June, its highest level since August The index has been in expansionary territory for ten consecutive months. The new orders component of the PMI a gauge of manufacturing s health in the months ahead rose to 63.5 in June, bringing it close to the multi-year high of 65.1 reached at the beginning of Net Absorption/Rent NNN 4-QTR TRAILING AVERAGE Net Absorption, MSF Weighted Asking Rent, $ PSF $6.00 $5.50 $5.00 $4.50 $4.00 U.S. rail traffic in Q was a mix of great and mediocre. On the great side were year-to-date intermodal volumes through June that were the largest on record. The mediocre side saw motor vehicles and parts shipments post their sixth straight monthly decline. But while new light vehicle sales are down from 2016 s record pace, there is no reason to panic. Auto sales are higher in the first half of 2017 than in any comparable period since The Conference Board s Consumer Confidence Index ticked upward to in June. Through the first half of 2017, the average index was The last time the measure remained that high over a six-month period was late Despite an unexpected decline in retail sales in May (-0.3%), core retail sales which correspond most closely with the consumer spending portion of GDP were unchanged in May (0.6%), and online sales increased by 0.8% in May after rising 0.9% in April. Given the solid labor market, a promising manufacturing outlook, strong transportation indices, high consumer confidence and rising wages, expect to see the industrial run continue. Overall Vacancy 10.0% 8.0% Historical Average = 8.3% 6.0% 4.0% 2.0% 0.0% Source: Cushman & Wakefield Research Market Overview The U.S. industrial market absorbed 59.5 million square feet (msf) of space in the second quarter of 2017, up 6.6% from that registered in the previous quarter, propelling year-to-date net absorption to msf. Every industrial segment remains in growth mode: through mid-year, warehouse and distribution space posted msf of net absorption, manufacturing registered 8.3 msf, and flex product experienced 5.4 msf of net occupancy gains. Occupier demand for modern logistics space continues to be hot, with leasing of newly constructed speculative and build-tosuit product delivered in the past 24 months accounting for 62.3% of Q net absorption. Although 19 markets report over 1 msf of positive net absorption during the second quarter, Chicago (6.9 msf), Atlanta (6.3 msf), Dallas/Ft. Worth (5.7 cushmanwakefield.com 1

2 MARKETBEAT U.S. Industrial Q msf), the Pennsylvania I-81/I-78 Distribution Corridor (4.6 msf), the Inland Empire (3.6 msf) and Central New Jersey (2.5 msf) account for nearly half of the nation s net absorption. Demand has exceeded supply has exceeded supply for 29 quarters. That has resulted in historic lows for vacancy, and a challenging operating environment for industrial occupiers seeking to expand their supply chain networks. The national industrial vacancy rate tightened further in Q2 2017, as vacancy fell 20 basis points (bps) to 5.3%, a full 300 bps below the 10-year historical average. Vacancy declined or held firm in 37 of the 79 markets tracked by Cushman & Wakefield, and rates remain below their 10-year historical average in all 79 markets. On the development front, msf has been delivered so far in 2017, with 52.5 msf of that total coming online in the second quarter. Over two-thirds of the deliveries this year have been speculative, but preleasing of speculative product remains brisk. In Q2 2017, preleasing rates for newly delivered product rose 340 bps from the first quarter to 48.9%, a clear indication of strong demand for functional product. The construction pipeline expanded noticeably in the second quarter, increasing by 8.1% from Q to msf. While the greatest concentration of construction is in large markets with strong underlying fundamentals and low vacancies, construction starts increased in 46 of 79 markets. Given the tight conditions and strong leasing by ecommerce and 3PL occupiers, industrial asking rents have continued to rise. U.S. industrial asking rents for all product types increased 4.6% in Q from a year ago to $5.62 per square foot (psf). Average U.S. industrial rents rose in 61 of 79 markets during the same time, with over one-quarter of the industrial markets reporting double-digit gains. Meanwhile, average U.S. warehouse rents for all classes increased 4.3% in Q from a year ago to $5.05 psf the highest mark since Cushman & Wakefield began tracking the metric in Many Markets Remain as Tight as a Drum CURRENT VACANCY VS. PRIOR CYCLE TROUGH 14% Q Vacancy Prior Cycle Lows ( ) 12% 10% 8% 6% 4% 2% 0% Source: Cushman & Wakefield Research Speculative Construction Is on the Rise SPEC DELIVERIES ARE RISING BUT REMAIN WELL BELOW PRIOR CYCLES 90% 60% 30% 0% BTS Speculative Q Source: Cushman & Wakefield Research Outlook Logistics-related leasing will benefit from solid economic fundamentals that spur increased consumer spending. Net absorption will eclipse 225 msf for a fourth year in a row. Deliveries will not overpower demand, but increased speculative supply will place upward pressure on vacancy. Expect continued rental rate appreciation in the second half of 2017 with rent growth decelerating in On Pace for Another Strong Year DEMAND CONTINUES TO KEEP PACE WITH SUPPLY % % % % % (50) 2.0% (100) (150) 0.0% Absorption (MSF) Vacancy Rate Source: Cushman & Wakefield Research cushmanwakefield.com 2 Q2 2017

3 Demand Indicators Net Absorption Leasing Activity Demand Indicators (Overall) Q Q Q Q Q2 2017p Q2 2017p United States 77,284,442 78,483,313 63,129,827 55,837,434 59,470, ,015,762 Northeast 13,074,715 17,790,157 7,233,913 5,223,888 11,590,765 16,748,574 Midwest 14,865,228 23,968,635 15,788,785 12,632,717 10,906,301 21,173,940 South 23,715,895 21,353,134 27,857,093 22,685,920 24,965,276 39,325,696 West 25,628,604 15,371,387 12,250,036 15,294,909 12,008,496 45,767,552 U.S. Industrial Report Markets Q Q Q Q Q2 2017p Q2 2017p Atlanta, GA 3,852,450 2,245,312 3,546,425 6,399,144 6,264,777 4,889,962 Austin, TX 242,070 80, , , , ,182 Baltimore, MD 506,425 1,029, , ,088 2,395,619 1,006,326 Binghamton, NY 117,480 80,204 8,605 99,383 80,590 n/a Birmingham, AL 403, ,217 33, ,522 12, ,745 Boston, MA 1,079,816 2,190, , , , ,449 Buffalo, NY 136, ,257 1,217, ,685 94, ,095 Central Valley, CA 519, ,895 2,031,463 92, , ,134 Charleston, SC 646,339-42,512 1,001,344 1,293, , ,215 Charlotte, NC 1,503,782 1,158,781 1,812, ,188 1,145, ,158 Chicago, IL 5,656,574 10,474,949 4,149,725 2,891,269 6,938,000 4,296,870 Cincinnati, OH 1,787,525 1,833, ,179 3,966, ,015 1,137,431 Cleveland, OH -36, ,032 1,187, , , ,405 Colorado Springs, CO 98,615-97, , , , ,862 Columbus, OH 180,470 1,349,355 2,080, , ,634 1,897,371 Dallas/Ft. Worth, TX 4,809,247 7,200,702 5,298,286 6,650,273 5,678,052 8,054,198 Dayton, OH 328, , , , ,099 75,616 Denver, CO 1,450, , , ,192 1,473,181 3,985,137 Detroit, MI 1,478,756 1,070, , , ,847 1,692,314 El Paso, TX 712, ,711-78,692 76, , ,841 Fort Myers/Naples, FL 351, , , , , ,206 Fredericksburg, VA 70, , , , , ,140 Ft. Lauderdale, FL 20, , , , , ,779 Greenville, SC 3,131,610 1,560,194 1,353, ,093 1,385, ,560 Hampton Roads, VA 390,311-3, , , , ,810 Hartford, CT 347, , , , , ,012 Houston, TX 92, ,247 4,065,736 1,100, ,411 4,802,741 Indianapolis, IN 2,720,089 3,108,214 1,848, , ,064 4,579,454 Inland Empire CA 8,608,335 3,784,917 3,636,653 4,233,160 3,587,967 9,649,107 Jacksonville, FL 727, , , , ,064 1,971,005 Kansas City, MO 1,775,923 1,134,989 1,840,583 2,449,729 2,374,998 2,330,838 Lakeland, FL 90, ,791 93, ,473-11, ,756 Las Vegas, NV 441, , , ,804 1,813,670 n/a Long Island, NY 112, , , ,859-47, ,107 Los Angeles, CA 2,769,413 1,783, ,202 1,729, ,060 7,631,568 Louisville, KY 1,599, , , , ,259 1,217,632 Memphis, TN 341, ,753 3,011,967 1,902,419 1,245,801 3,091,188 Miami, FL 353, , , ,494 52,590 2,177,744 Milwaukee, WI 743, ,596-12, , ,328 Minneapolis, MN 403, , , , ,473 n/a MarketBeat U.S. Q cushmanwakefield.com 3

4 Demand Indicators Net Absorption Leasing Activity Demand Indicators (Overall) Q Q Q Q Q2 2017p Q2 2017p Nashville, TN 1,433, ,168 2,529, , ,020 1,150,144 New Haven, CT -117, , , ,072 18, ,252 New Jersey - Central 2,672,125 2,088, ,054 1,400,046 2,523,645 3,950,608 New Jersey - Northern 1,341, , , ,784 1,105,617 2,420,426 Northern VA -125, ,531-54, , , ,316 Oakland/East Bay, CA 3,125, , , , ,341 2,496,916 Oklahoma City, OK 355,395 79,041-66,220-56, , ,411 Omaha, NE 81, , , , , ,055 Orange County, CA 625, , ,332 73,028 53,932 1,561,698 Orlando, FL 822, ,947 1,013, , , ,779 Palm Beach County, FL 317, , , , , ,408 PA I-81/I-78 Distribution Corridor 4,069,078 7,608,813 2,326,714 2,256,669 4,629,244 4,976,712 Philadelphia, PA 1,336,387 3,442,237 1,520,977 1,264,786 1,324,880 1,085,319 Phoenix, AZ 2,196,394 2,244,605 1,572,074 2,105,250 1,199,401 7,862,563 Pittsburgh, PA 967, , , , , ,966 Portland, OR 978, , , , ,963 1,566,760 Providence, RI 254, , , ,650 87, ,286 Puget Sound - Eastside 1,322, , , ,918 74, ,744 Raleigh/Durham, NC 283, , ,104-58, , ,303 Richmond, VA 321,430 75, , , , ,856 Roanoke, VA 63, ,142 69, ,933 1,115,132 33,168 Rochester, NY 801, , ,189-4, ,166 84,970 Sacramento, CA 368, , ,313 1,359, ,658 1,540,013 Salt Lake City, UT 612, , ,247 1,372,941 1,042,903 2,233,567 San Antonio, TX 142,329 88, , , , ,018 San Diego, CA 374, , , ,736 17,518 1,693,870 San Francisco North Bay, CA 52, , , ,809 51, ,850 San Francisco Peninsula, CA 34, ,018 72,077-15, , ,916 San Jose (Silicon Valley), CA 494, ,112-36, , , ,640 Savannah, GA -120,950 48, ,098 n/a 1,183,500 1,183,500 Seattle, WA 1,291,209 2,512, ,043 1,505,694 96,309 2,249,354 Southern New Hampshire 61, ,310 18, ,928 60, ,797 St. Louis, MO -255,024 3,171,439 1,902,829 1,749, ,190 3,030,258 St. Petersburg/Clearwater, FL 30,381-37, , ,098 8, ,117 Suburban MD 275, , ,065-2,323-56, ,405 Syracuse, NY -103, , ,613-51, , ,575 Tampa, FL 262, , , ,673 19, ,083 Tucson, AZ 264,250 1,037, ,089 42, , ,853 Tulsa, OK -190, , , ,227 25,867 n/a p = preliminary MarketBeat U.S. Q cushmanwakefield.com 4

5 Vacancy Rates Overall Vacancy Rate Q Q Q Q Q2 2017p United States 6.1% 5.8% 5.5% 5.5% 5.3% Northeast 7.1% 6.6% 6.3% 6.2% 5.5% Midwest 5.9% 5.8% 5.4% 5.5% 5.5% South 7.0% 6.8% 6.6% 6.6% 6.6% West 4.6% 4.2% 4.1% 4.0% 3.7% U.S. Industrial Report Markets Q Q Q Q Q2 2017p Atlanta, GA 8.4% 8.6% 9.0% 8.7% 8.4% Austin, TX 7.7% 7.5% 6.4% 9.5% 8.6% Baltimore, MD 7.2% 7.0% 6.6% 7.9% 7.3% Binghamton, NY 11.7% 11.7% 10.8% 11.3% 10.3% Birmingham, AL 14.4% 9.0% 8.8% 11.4% 11.3% Boston, MA 7.0% 6.7% 6.4% 6.6% 6.4% Buffalo, NY 9.0% 8.9% 8.9% 9.2% 9.0% Central Valley, CA 5.4% 5.2% 3.4% 3.0% 3.1% Charleston, SC 7.7% 6.8% 6.8% 4.7% 6.0% Charlotte, NC 4.5% 3.8% 3.6% 3.4% 3.6% Chicago, IL 6.3% 6.1% 6.3% 6.4% 6.3% Cincinnati, OH 4.0% 4.2% 4.2% 3.0% 3.3% Cleveland, OH 5.0% 4.9% 4.6% 4.6% 4.2% Colorado Springs, CO 9.1% 9.8% 10.1% 9.9% 9.6% Columbus, OH 6.5% 5.9% 5.5% 5.6% 5.9% Dallas/Ft. Worth, TX 6.9% 6.6% 6.9% 7.2% 6.9% Dayton, OH 8.6% 8.1% 8.0% 7.7% 7.6% Denver, CO 3.4% 3.9% 4.3% 4.9% 4.8% Detroit, MI 4.6% 4.0% 4.0% 3.5% 3.5% El Paso, TX 6.6% 7.1% 6.8% 6.8% 5.7% Fort Myers/Naples, FL 3.8% 3.3% 2.8% 2.2% 2.0% Fredericksburg, VA 10.2% 8.1% 7.6% 8.5% 6.6% Ft. Lauderdale, FL 6.8% 5.5% 4.4% 4.5% 4.4% Greenville, SC 6.7% 6.9% 6.6% 6.4% 6.1% Hampton Roads, VA 6.5% 6.3% 6.6% 5.4% 5.4% Hartford, CT 12.8% 11.9% 11.7% 5.1% 5.4% Houston, TX 6.4% 6.7% 7.1% 7.0% 6.8% Indianapolis, IN 4.9% 3.6% 3.0% 5.1% 5.1% Inland Empire CA 4.7% 4.7% 4.4% 4.0% 4.1% Jacksonville, FL 6.5% 6.5% 6.2% 5.6% 5.4% Kansas City, MO 7.5% 7.5% 8.3% 8.3% 7.8% Lakeland, FL 5.5% 4.2% 3.7% 5.1% 5.1% Las Vegas, NV 5.8% 5.6% 5.1% 5.7% 6.0% Long Island, NY 6.9% 6.5% 6.6% 6.8% 6.9% Los Angeles, CA 1.6% 1.3% 1.4% 1.3% 1.2% Louisville, KY 5.4% 6.2% 6.6% 7.2% 7.7% Memphis, TN 9.3% 9.2% 8.7% 8.3% 8.8% Miami, FL 4.9% 4.4% 4.3% 4.2% 5.0% Milwaukee, WI 4.2% 4.0% 4.4% 4.5% 4.5% Minneapolis, MN 8.5% 8.4% 8.2% 8.7% 8.7% MarketBeat U.S. Q cushmanwakefield.com 5

6 Vacancy Rates Overall Vacancy Rate Q Q Q Q Q2 2017p Nashville, TN 3.4% 3.1% 2.9% 3.2% 2.9% New Haven, CT 12.9% 13.2% 12.6% 6.1% 5.0% New Jersey - Central 4.3% 4.3% 4.2% 4.1% 4.3% New Jersey - Northern 5.7% 5.9% 5.9% 5.5% 4.8% Northern VA 9.6% 9.2% 9.2% 8.8% 8.5% Oakland/East Bay, CA 2.7% 3.1% 2.6% 2.2% 2.3% Oklahoma City, OK 7.2% 6.7% 7.3% 6.8% 7.5% Omaha, NE 3.1% 3.2% 3.2% 3.1% 3.3% Orange County, CA 2.3% 2.2% 2.0% 2.0% 1.9% Orlando, FL 5.8% 5.1% 4.6% 5.1% 5.6% Palm Beach County, FL 4.4% 3.8% 4.2% 3.5% 3.6% PA I-81/I-78 Distribution Corridor 5.1% 3.9% 4.7% 5.1% 5.3% Philadelphia, PA 5.4% 4.9% 4.2% 3.9% 3.7% Phoenix, AZ 9.6% 9.3% 9.1% 8.9% 8.6% Pittsburgh, PA 5.6% 6.0% 5.7% 5.7% 4.8% Portland, OR 4.4% 4.3% 4.0% 3.9% 3.2% Providence, RI 0.3% 0.2% 0.3% 0.2% 0.2% Puget Sound - Eastside 5.3% 4.9% 4.7% 4.3% 4.3% Raleigh/Durham, NC 5.8% 6.2% 5.9% 6.3% 6.1% Richmond, VA 7.5% 6.9% 6.6% 5.4% 5.1% Roanoke, VA 8.1% 8.3% 7.2% 8.0% 7.9% Rochester, NY 10.2% 9.9% 9.6% 9.6% 9.0% Sacramento, CA 9.4% 8.9% 10.8% 6.2% 5.6% Salt Lake City, UT 7.0% 7.5% 7.2% 6.1% 5.4% San Antonio, TX 9.0% 9.6% 9.6% 10.0% 8.9% San Diego, CA 5.0% 5.1% 5.3% 5.1% 5.1% San Francisco North Bay, CA 6.5% 5.2% 5.5% 5.2% 5.1% San Francisco Peninsula, CA 2.8% 2.9% 2.6% 2.6% 2.1% San Jose (Silicon Valley), CA 2.2% 2.6% 3.3% 3.2% 3.6% Savannah, GA 2.4% 2.3% 3.0% 3.0% 3.2% Seattle, WA 4.6% 3.8% 3.8% 3.4% 3.7% Southern New Hampshire 16.0% 15.8% 15.7% 6.3% 6.8% St. Louis, MO 7.5% 6.6% 6.9% 6.7% 6.8% St. Petersburg/Clearwater, FL 5.6% 5.8% 4.7% 4.1% 4.0% Suburban MD 12.7% 11.6% 10.7% 9.9% 10.5% Syracuse, NY 10.3% 11.3% 10.6% 10.7% 9.9% Tampa, FL 6.1% 5.6% 5.5% 5.0% 5.4% Tucson, AZ 8.6% 8.1% 7.8% 7.4% 7.7% Tulsa, OK 7.8% 7.4% 7.6% 8.8% 9.1% p = preliminary MarketBeat U.S. Q cushmanwakefield.com 6

7 Asking Rents Overall (All Property Types) W/D MFG Weighted Average Asking Rent Q Q Q Q Q2 2017p Q2 2017p United States $5.38 $5.42 $5.50 $5.56 $5.62 $5.06 $5.50 Northeast $5.53 $5.65 $5.87 $6.02 $6.13 $5.87 $4.87 Midwest $4.34 $4.38 $4.42 $4.41 $4.40 $4.21 $4.57 South $5.12 $5.22 $5.18 $5.15 $5.22 $4.58 $4.43 West $6.96 $6.99 $7.14 $7.43 $7.78 $6.93 $8.47 U.S. Industrial Report Markets Q Q Q Q Q2 2017p Q2 2017p Atlanta, GA $4.22 $4.17 $4.20 $4.31 $4.35 $3.75 $3.52 Austin, TX $9.66 $9.75 $9.71 $9.27 $9.21 $6.45 n/a Baltimore, MD $5.57 $5.49 $5.35 $5.08 $4.78 $4.16 n/a Binghamton, NY $4.81 $4.81 $4.71 $4.70 $4.64 $3.90 $4.29 Birmingham, AL $3.57 $4.70 $5.01 $4.18 $4.23 $3.85 n/a Boston, MA $6.02 $6.17 $6.22 $6.61 $6.85 $6.22 $7.91 Buffalo, NY $4.13 $4.98 $4.98 $4.13 $4.13 $4.25 $3.95 Central Valley, CA $4.02 $4.06 $4.08 $4.24 $4.41 $4.44 $3.36 Charleston, SC $5.31 $5.31 $5.26 $5.36 $5.35 $5.48 $4.71 Charlotte, NC $5.03 $5.17 $5.15 $5.11 $5.27 $4.62 $3.96 Chicago, IL $4.88 $4.79 $4.76 $4.87 $4.98 $4.76 $4.64 Cincinnati, OH $4.01 $3.91 $4.06 $4.33 $4.27 $3.82 $3.83 Cleveland, OH $3.95 $3.88 $3.94 $3.99 $4.10 $3.80 n/a Colorado Springs, CO $6.42 $7.27 $7.40 $8.02 $7.42 $6.90 n/a Columbus, OH $3.35 $3.35 $3.43 $3.46 $3.46 $3.46 n/a Dallas/Ft. Worth, TX $5.16 $4.89 $4.84 $4.86 $4.93 $3.99 $3.81 Dayton, OH $3.22 $3.19 $3.21 $3.32 $3.32 $3.40 $2.97 Denver, CO $7.04 $7.23 $7.57 $8.03 $8.10 $6.49 $8.08 Detroit, MI $5.25 $5.26 $5.26 $5.36 $5.53 $5.14 $4.92 El Paso, TX $3.95 $3.95 $3.95 $3.95 $3.95 $4.00 $3.90 Fort Myers/Naples, FL $6.61 $6.72 $6.80 $7.44 $7.45 $7.15 $7.52 Fredericksburg, VA $5.83 $5.65 $5.67 $5.76 $5.68 $5.77 $5.04 Ft. Lauderdale, FL $9.65 $9.52 $8.69 $8.92 $9.12 $8.39 $8.31 Greenville, SC $3.53 $3.55 $4.16 $3.44 $4.17 $3.68 $3.79 Hampton Roads, VA $5.18 $5.21 $5.42 $5.08 $5.07 $4.86 $5.64 Hartford, CT $4.27 $4.32 $4.08 $4.53 $4.20 $4.31 $3.54 Houston, TX $6.19 $6.12 $6.14 $6.23 $6.28 $6.12 $5.94 Indianapolis, IN $3.50 $3.55 $3.62 $3.70 $3.74 $3.39 $3.15 Inland Empire CA $6.24 $6.58 $6.82 $7.28 $7.42 $7.09 $8.28 Jacksonville, FL $3.99 $4.34 $4.24 $4.63 $4.74 $4.30 $3.90 Kansas City, MO $4.48 $4.51 $4.41 $4.38 $4.45 $3.83 $4.42 Lakeland, FL $4.89 $4.85 $5.00 $5.17 $5.18 $5.14 $5.34 Las Vegas, NV $7.78 $7.86 $7.27 $7.88 $7.76 $6.41 n/a Long Island, NY $8.25 $8.53 $8.86 $9.97 $9.25 $9.02 $9.93 Los Angeles, CA $8.29 $8.79 $9.08 $9.25 $9.05 $8.72 $8.47 Louisville, KY $3.63 $3.67 $3.68 $3.76 $3.76 $3.68 $3.26 Memphis, TN $2.51 $2.49 $2.55 $2.57 $2.64 $2.30 n/a Miami, FL $7.23 $7.32 $8.32 $7.98 $8.13 $8.17 $7.16 Milwaukee, WI $4.33 $4.39 $4.35 $4.45 $4.55 $3.95 $4.88 Minneapolis, MN $4.67 $4.78 $4.78 $4.79 $4.80 $4.52 n/a MarketBeat U.S. Q cushmanwakefield.com 7

8 Asking Rents Overall (All Property Types) W/D MFG Weighted Average Asking Rent Q Q Q Q Q2 2017p Q2 2017p Nashville, TN $3.97 $4.14 $4.07 $4.18 $5.14 $4.98 $4.04 New Haven, CT $5.20 $5.68 $5.24 $5.85 $5.30 $4.75 $5.32 New Jersey - Central $6.97 $7.18 $7.28 $7.31 $7.40 $6.31 $6.39 New Jersey - Northern $7.71 $7.71 $7.90 $7.60 $7.78 $7.56 $6.28 Northern VA $10.89 $11.11 $11.12 $11.15 $11.16 $8.87 n/a Oakland/East Bay, CA $8.52 $8.88 $9.01 $9.65 $9.98 $9.03 $10.56 Oklahoma City, OK $4.57 $4.65 $4.61 $4.86 $4.98 $4.08 $3.12 Omaha, NE $5.22 $5.55 $5.41 $5.63 $5.57 $5.20 $4.85 Orange County, CA $10.44 $10.91 $11.21 $11.10 $11.40 $9.70 $12.30 Orlando, FL $6.65 $6.45 $6.48 $6.32 $6.29 $5.43 $5.17 Palm Beach County, FL $9.35 $9.64 $10.71 $11.12 $10.62 $10.12 $8.15 PA I-81/I-78 Distribution Corridor $4.57 $4.53 $4.64 $4.72 $4.74 $4.74 n/a Philadelphia, PA $4.52 $4.65 $4.63 $4.81 $4.95 $4.25 $4.30 Phoenix, AZ $6.43 $6.54 $7.05 $7.03 $6.80 $5.03 $7.52 Pittsburgh, PA $7.70 $7.72 $7.84 $7.54 $7.09 $5.01 $5.11 Portland, OR $7.22 $7.62 $8.02 $7.73 $8.30 $8.53 $6.88 Providence, RI $4.85 $4.85 $4.85 $4.85 $4.85 $4.70 n/a Puget Sound - Eastside $10.89 $11.24 $11.62 $12.27 $12.12 $10.69 $7.78 Raleigh/Durham, NC $6.44 $7.06 $6.99 $7.28 $7.50 $5.51 $6.98 Richmond, VA $4.34 $4.67 $4.72 $4.71 $4.79 $4.17 $3.84 Roanoke, VA $4.10 $4.18 $4.32 $3.94 $3.99 $3.78 $4.30 Rochester, NY $4.84 $4.84 $4.84 $4.84 $4.84 $3.25 $4.75 Sacramento, CA $4.40 $4.43 $4.55 $4.68 $4.80 $4.80 $5.52 Salt Lake City, UT $5.40 $5.47 $5.45 $5.37 $5.49 $5.06 $5.72 San Antonio, TX $5.83 $5.85 $5.98 $6.04 $5.77 $4.97 n/a San Diego, CA $12.12 $12.00 $12.12 $12.00 $11.76 $8.76 $10.20 San Francisco North Bay, CA $9.87 $9.97 $10.23 $10.04 $9.42 $9.42 $6.42 San Francisco Peninsula, CA $13.50 $15.95 $14.12 $14.72 $16.18 $15.18 $18.68 San Jose (Silicon Valley), CA $9.96 $11.88 $12.60 $12.00 $12.48 $11.28 $13.32 Savannah, GA $4.55 $4.79 $4.75 $4.75 $4.69 $4.32 n/a Seattle, WA $6.04 $6.61 $6.73 $7.15 $7.38 $6.65 $5.95 Southern New Hampshire $6.14 $6.07 $5.53 $5.90 $5.72 $5.02 $5.26 St. Louis, MO $4.28 $4.27 $4.39 $4.45 $4.58 $4.17 $8.94 St. Petersburg/Clearwater, FL $7.61 $7.34 $7.72 $7.93 $8.05 $5.96 $6.44 Suburban MD $9.20 $9.44 $9.57 $10.11 $9.36 $7.67 n/a Syracuse, NY $3.65 $3.81 $3.83 $3.85 $4.07 $4.37 $3.13 Tampa, FL $5.48 $6.12 $6.10 $6.15 $5.77 $4.91 $4.09 Tucson, AZ $6.80 $6.81 $6.67 $6.44 $6.30 $6.07 $5.48 Tulsa, OK $4.50 $4.52 $4.52 $4.52 $4.53 $4.85 $3.79 p = preliminary MarketBeat U.S. Q cushmanwakefield.com 8

9 Inventory Inventory Inventory Deliveries YTD 2017 Under Construction as of Q2 2017p United States 14,046,531, ,189, ,079,831 Northeast 2,119,104,897 15,967,555 28,891,269 Midwest 3,886,798,622 23,405,869 56,302,386 South 4,132,307,732 45,552,246 84,740,445 West 3,908,320,346 22,263,775 67,145,731 U.S. Industrial Report Markets Inventory Deliveries YTD 2017 Under Construction as of Q2 2017p Atlanta, GA 559,993,730 9,659,538 18,348,937 Austin, TX 38,644, , ,274 Baltimore, MD 202,439, ,856 6,173,519 Binghamton, NY 17,613,764 **** 700,000 Birmingham, AL 14,708, ,000 Boston, MA 131,368, ,014 1,004,432 Buffalo, NY 111,277,196 55, ,400 Central Valley, CA 114,598, ,800 4,405,420 Charleston, SC 64,992, ,002 6,113,074 Charlotte, NC 179,957,857 1,509,406 1,345,483 Chicago, IL 1,180,989,237 8,723,232 18,428,814 Cincinnati, OH 282,271,739 1,409,824 3,012,883 Cleveland, OH 491,873, ,725 1,648,000 Colorado Springs, CO 31,763, ,440 Columbus, OH 248,036, ,000 6,339,360 Dallas/Ft. Worth, TX 592,329,583 11,104,431 14,589,175 Dayton, OH 114,223, ,700 1,503,349 Denver, CO 243,119,997 2,527,522 5,959,170 Detroit, MI 494,341,274 1,257,261 3,273,214 El Paso, TX 52,037, ,500 Fort Myers/Naples, FL 41,999, , ,860 Fredericksburg, VA 10,494, ,000 Ft. Lauderdale, FL 87,512, ,137 1,031,524 Greenville, SC 125,492, , ,850 Hampton Roads, VA 96,470, , ,000 Hartford, CT 92,730, ,000 1,061,850 Houston, TX 412,853,101 3,095,146 2,122,737 Indianapolis, IN 250,704,546 2,041,463 7,222,684 Inland Empire CA 504,886,132 6,603,227 27,207,194 Jacksonville, FL 104,507, ,343,476 Kansas City, MO 212,037,190 3,995,305 7,473,110 Lakeland, FL 30,928, , ,920 Las Vegas, NV 119,620,990 3,601,254 3,387,731 Long Island, NY 130,593, ,297 Los Angeles, CA 1,077,285,198 1,544,968 8,630,386 Louisville, KY 153,461,087 3,043,625 4,882,895 Memphis, TN 193,376,072 2,641,192 3,193,010 Miami, FL 157,179,499 2,049,276 2,385,130 Milwaukee, WI 198,182, , ,337 Minneapolis, MN 105,822, ,373 2,254,542 MarketBeat U.S. Q cushmanwakefield.com 9

10 Inventory Inventory Inventory Deliveries YTD 2017 Under Construction as of Q2 2017p Nashville, TN 204,479,749 2,020,132 4,448,300 New Haven, CT 47,798,552 30, ,500 New Jersey - Central 338,995,144 4,751,804 5,846,034 New Jersey - Northern 285,876, ,600 1,716,735 Northern VA 57,051, ,485 Oakland/East Bay, CA 204,831, ,483 1,499,605 Oklahoma City, OK 70,590, , ,200 Omaha, NE 68,235, ,256 1,012,695 Orange County, CA 283,176, , ,904 Orlando, FL 117,043,071 1,843,183 1,209,615 Palm Beach County, FL 40,517, , ,860 PA I-81/I-78 Distribution Corridor 259,997,039 7,588,663 12,438,409 Philadelphia, PA 294,311,006 1,298,650 3,039,169 Phoenix, AZ 307,138,523 2,211,399 3,991,235 Pittsburgh, PA 167,747, , ,570 Portland, OR 195,050,921 1,068,870 2,302,100 Providence, RI 77,727,305 n/a n/a Puget Sound - Eastside 61,325, , ,677 Raleigh/Durham, NC 51,378, , ,914 Richmond, VA 95,679, , ,333 Roanoke, VA 50,093, , ,000 Rochester, NY 73,551, ,000 Sacramento, CA 141,000, ,734 1,212,223 Salt Lake City, UT 125,875, ,198 3,117,647 San Antonio, TX 39,305, ,726 1,061,068 San Diego, CA 162,738, ,336 1,168,757 San Francisco North Bay, CA 21,960, ,020 0 San Francisco Peninsula, CA 41,954, San Jose (Silicon Valley), CA 85,154, , ,610 Savannah, GA 51,503,655 1,043,671 5,092,142 Seattle, WA 144,096,189 1,433,172 2,647,821 Southern New Hampshire 46,774, ,404,873 St. Louis, MO 240,081,119 1,735,400 3,583,398 St. Petersburg/Clearwater, FL 47,606, , ,000 Suburban MD 48,594, , ,666 Syracuse, NY 42,742,531 36, ,000 Tampa, FL 78,861, ,126 1,241,498 Tucson, AZ 42,742, ,160 29,811 Tulsa, OK 60,222,675 42, ,000 p = preliminary MarketBeat U.S. Q cushmanwakefield.com 10

11 About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory marks the 100- year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients ideas and putting them into action. To learn more, visit or on Twitter. Methodology Cushman & Wakefield s quarterly estimates are derived from a variety of data sources, including its own proprietary database, and historical data from third party data sources. The market statistics are calculated from a base building inventory made up of industrial properties deemed to be competitive in the local industrial markets. Generally, owner-occupied and federally-owned buildings are not included. Older buildings unfit for occupancy or ones that require substantial renovation before tenancy are generally not included in the competitive inventory. The inventory is subject to revisions due to resampling. Vacant space is defined as space that is available immediately or imminently after the end of the quarter. Sublet space still occupied by the tenant is not counted as available space. The figures provided for the current quarter are preliminary, and all information contained in the report is subject to correction of errors and revisions based on additional data received. Explanation of Terms Total Inventory: The total amount of industrial space (in buildings of a predetermined size by market) that can be rented by a third party. Regional Map Overall Vacancy Rate: The amount of unoccupied space (new, relet, and sublet) expressed as a percentage of total inventory. Absorption: The net change in occupied space between two points in time. (Total occupied space in the present quarter minus total occupied space from the previous quarter, quoted on a net, not gross, basis.) Leasing Activity: The sum of all leases over a period of time. This includes pre-leasing activity as well as expansions. It does not include renewals. Overall Weighted Asking Rents: NNN average asking rents weighted by the amount of available direct and sublease space in industrial properties. W/D: Warehouse and or distribution properties. MFG: Manufacturing properties. West Midwest South Northeast Jason Tolliver Head of Industrial Research, Americas Tel: cushmanwakefield.com Carolyn Salzer Industrial Research Analyst, Americas Tel: cushmanwakefield.com Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.